India’s economic growth for the fiscal year 2025 has been revised downward by the International Monetary Fund (IMF), reflecting global economic uncertainties. The IMF now projects India’s GDP to grow at 6.2%, down from its previous estimate of 6.5% for the fiscal year 2025-26, a decrease of 0.3 percentage points and 0.2 percentage points to 6.3% from 6.1% for the next fiscal year 2026-27.
This adjustment is attributed to escalating global trade tensions and the imposition of tariffs by the United States.
Despite this revision, India is projected to continue leading the way in major economic growth. IMF chief economist Gita Gopinath said, “Our April 2025 World Economic Outlook projects significantly weaker global growth at 2.8 per cent for 2025 with growth downgrades for 127 countries making up 86 per cent of world GDP.”
As per the World Bank of India, the real GDP growth for India 2025-26 is projected at 6.5 per cent, lower than the earlier projection of 6.7 per cent, with Q1 growth seen at 6.5 per cent; Q2 at 6.7 per cent; Q3 at 6.6 per cent; and Q4 at 6.3 per cent.
Talking about other countries, China ranked second with 4 per cent for 2025 and 4.6 per cent in 2026, and the U.S,. which has triggered the tariff turmoil across the globe, is expected to see its GDP grow slowly to 1.8 per cent in 2025, which is expected to decline the next year 2026 to 1.7 per cent, according to the IMF report.
Japan is also expected to be significantly impacted by the global trade war, with a projected 0.6 per cent growth in both years.
